Alberta cattle producers can now ask for a refund of their $3 per head mandatory checkoff.
For some producers it’s the beginning of a slow death for the Alberta Beef Producers and its strong voice for the province’s cattle producers.
For others, it’s a signal cattle politics are going to be more responsive to producers.
Bill Hanson, president of the Western Stock Growers Association, said producers can ask for a refund of their money, they can keep it to pay bills or redirect it to cattle organizations they believe are doing the best job.
Read Also
Research looks to control flea beetles with RNAi
A Vancouver agri-tech company wants to give canola growers another weapon in the never-ending battle against flea beetles.
“I do see it as an awakening for producers. Now they have an option and have influence on how their money is spent.”
Hanson believes the stock growers, a 114-year-old organization, will see some of the $12 million in check-off money redirected to the organization.
“I see very positive things happening,” said Hanson, who estimates it will take two years for the different cattle organizations to determine what percentage of the check-off money will come their way.
Under the new rules approved by Alberta Agriculture’s Marketing Products Council, producers can apply for the full refund twice a year. This year, producers can apply in July for refunds for animals sold between April 1 and June 30. The cheques will be issued by October after the Alberta Beef Producers has verified the sales were made and a checkoff was taken.
Refunds for sales made between July and December can be made in January.
Hanson said he isn’t concerned with applying for refunds only twice a year.
“I think that’s fine. We’re grateful to have it. Twice a year is far better than never having the opportunity to apply for it.”
In February, Alberta agriculture minister Jack Hayden said he would make changes so only the $2 provincial portion of the fee could be refunded. The $1 fee directed to national organizations like the Beef Information Centre, the Canadian Beef Export Federation and the Canadian Beef Research Council would not be eligible for refunds.
Dave Burdek, general manager of the Alberta Products Marketing Council, said the minister has since softened his position and wants the beef organizations to come up with a co-operative solution for dealing with the federal portion of the checkoff.
“He’s put the challenge back on to industry on how to participate co-operatively to get that done,” said Burdek.
Laura Procunier, ABP’s controller, said it will be a challenge for ABP to continue its existing work in addition to the added administration required for refunding the checkoff.
“We’ll do it with existing staff resources. We’ll just have to work harder,” said Procunier.
She said keeping the money with the ABP ensures a strong, unified voice for cattle producers.
Bryon Walton, chief executive officer of the Alberta Cattle Feeders Association, believes the change to a refundable checkoff is an important step for the cattle industry.
“Producers now have a choice where they direct their dollars.”
The organization’s business plan anticipates 50 cents of the $3 checkoff will be used for membership issues, another 50 cents for the national cattle feeder organization and $2 for a beef development fund.
The cattle feeders want money in the business development fund to support a national and offshore branded beef program.
